Theory of consumer behaviour — Economics STD 12 Humanities & Commerce — Question

Law of demand does not hold in case of:

1. Emergency.
2. Expectation of price rise.
3. Conspicuous goods.
4. All of the above.

Ed = 1 in case of:

1. Luxuries.
2. Normal goods.
3. Necessities.
4. Essentials.

Repo rate is the rate at which:

1. Commercial banks purchase government securities from the central bank.
2. Commercial banks can take loans from the central bank.
3. Commercial banks can keep their deposits with the central bank.
4. Short-term loans are given by commercial banks.

If a firm's supply increases due to application of improved technology, this is known as:

1. Expansion in supply.
2. Contraction in supply.
3. Increase in supply.
4. Increase in quantity supplied.

Hint: If the supply of a commodity increases due to other factors than its price, it is called 'increase in supply'. Causes of increase in supply are improvement in technology, increase in price of its complementary goods, decrease in taxation, decrease in price of its substitute goods, etc.

If in a oligopoly, the fir1ms are selling homogeneous products, then the oligopoly firm is called:

1. Pure competition.
2. Pure oligopoly.
3. Monopoly.
4. Duopoly.

Which is not a part of income receipts and payments from/to abroad in BoP account?

1. Profits.
2. Grants.
3. Interest.
4. Dividends.

........ is the minimum rate at which Central Bank is prepared to give credit to the commercial banks:

1. Repo rate.
2. Reverse repo.
3. CRR.
4. SLR.

________ is a systematic record of all the economic transactions between one country and rest of the world.

1. Balance of trade.
2. Balance of transactions.
3. Budget.
4. Balance of payments.

The absolute value of the coefficient of price elasticity of demand ranges from:

1. Zero to infinity.
2. Minus infinity to plus infinity.
3. One to minus infinity.
4. One to infinity.

When AR passes through minimum point of AVC, it is called:

1. Breakeven point.
2. Shutdown point.
3. Normal profit point.
4. Supernormal profit point.